Carbon Law Partner, Melissa Haskell, explores the government’s latest plans to ease business rates for pubs in England and Wales and why this move, while positive, may not go far enough to protect the wider hospitality sector.

Recent reports show the government plans to reduce the upcoming rise in business rates for pubs shows a step in the right direction. However, the support on offer is not enough to help all the pubs and hospitality businesses struggling right now.

The government plans to change how business rates are calculated, which should mean smaller increases for pubs. While this is helpful, it doesn’t solve all the problems. Many pub owners face big rate hikes, sometimes over 80% in a few years, and need more support. The new measures only target pubs, but many other hospitality businesses like restaurants and cafés are also suffering from rising costs and rates.

The current system is complicated. Business rates are based on the value of the property multiplied by a set figure called the “multiplier.” When values go up, so do bills. The government could help by reducing the multiplier or increasing transitional relief, but these are only short-term fixes. Real reform is needed to make the system fairer for small and medium-sized businesses.

Kate Nicholls, chair of UK Hospitality, representing the industry, said the support should apply not just to pubs, but to all hospitality businesses affected by rising rates, including cafés and restaurants – “We need a hospitality-wide solution, which is why the government should implement the maximum possible 20p discount to the multiplier for all hospitality properties”.

Meslissa Haskell says: “A positive move, but only part of the solution. Rising business rates remain a significant pressure point for pubs and the wider food, drink and leisure sector, particularly for small and medium-sized operators facing steep increases over a relatively short period. Targeted relief for pubs is helpful but risks overlooking the wider ecosystem of businesses facing the same pressures. Longer-term reform of the business rates framework is needed to protect high streets and give businesses confidence to invest and plan for the future.”

Pubs are more than just businesses; they are part of our communities and culture. Closing them would be a huge loss. The government should do more to support all hospitality businesses, not just pubs. While the recent climbdown is a good start, it isn’t enough. We need a fair, long-term plan that helps all businesses facing rising costs. Only then can we protect our pubs, and our high streets.

Want to learn more about Melissa Haskell and her expertise in supporting hospitality businesses? Visit her profile page here.